Data Center Cooling Market Size, Share, and Growth Analysis, By Component (Solution, Services), By Data Center Type, By Type of Cooling, By End-Use Industry, By Region - Industry Forecast 2026-2033

Global Data Center Cooling Market size was valued at USD 19.57 Billion in 2024 and is poised to grow from USD 22.74 Billion in 2025 to USD 75.65 Billion by 2033, growing at a CAGR of 16.21% during the forecast period (2026-2033).

The data center cooling market is witnessing significant growth driven by heightened demand for cloud platforms and the proliferation of hyperscale data centers. The surge in data volume from 5G expansion, coupled with increasing rack densities and heat loads, underscores the necessity for advanced cooling solutions. As operators focus on energy efficiency to lower operational expenses and minimize environmental impacts, innovative cooling technologies are becoming essential. Additionally, the rise of edge computing and decentralized micro-data centers increases the demand for localized cooling strategies. Regulatory pressures from governments and international bodies to enhance energy efficiency in data center operations further propel the evolution of cooling systems, positioning this market for sustained growth and adaptation in response to emerging industry needs.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Data Center Cooling market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Data Center Cooling Market Segments Analysis

The global data center cooling market is segmented by component, data center type, cooling type, end-use industry, and region. Based on components, the market is segmented into solutions and services. Based on data center type, the market is segmented into mid-sized data centers, enterprise data centers, and large data centers. Based on cooling type, the market is segmented into room-based cooling and row/rack-based cooling. Based on end-use industry, the market is segmented into BFSI, IT & telecom, research & academic, government & defense, retail, energy, manufacturing, healthcare, and other end-use industries. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.

Driver of the Global Data Center Cooling Market

The escalating need for colocation and third-party managed data centers among enterprises has significantly increased the demand for effective and scalable cooling solutions. These facilities accommodate a diverse range of workloads and densities within a unified structure. To remain competitive and attract clients, colocation providers are focusing on advanced cooling technologies that guarantee stable temperatures, reliable uptime, and enhanced energy efficiency. Additionally, the requirements set by Service-Level Agreements (SLAs) for strict thermal compliance further drive the necessity for upgrades to cooling systems, ensuring they meet the rigorous standards demanded by the industry.

Restraints in the Global Data Center Cooling Market

The Global Data Center Cooling market encounters significant restraints primarily due to its reliance on various technologies that incorporate water, like evaporative and water-based systems. In areas where water scarcity is a pressing concern or where stringent environmental regulations are in place, these cooling methods face considerable operational and regulatory hurdles. Furthermore, water-cooled systems necessitate routine treatment to mitigate risks associated with microbial growth and corrosion, increasing operational complexities. Additionally, growing public concern over water usage in regions prone to drought may further impede the acceptance and implementation of specific cooling solutions within the industry.

Market Trends of the Global Data Center Cooling Market

The Global Data Center Cooling market is experiencing a significant shift towards liquid cooling and immersion technologies, driven by the need to address increasing rack densities and demanding workloads associated with AI and high-performance computing. This trend highlights the growing preference for liquid cooling due to its superior thermal efficiency and reduced spatial footprint, making it an attractive option for modern data center designs. Major tech companies and hyperscale operators are actively investing in and expanding their use of liquid-cooled solutions. As the landscape evolves, vendors are responding with standardized, modular liquid cooling systems that integrate seamlessly with existing infrastructures, solidifying this approach as a key market trend.